Indonesia set to renegotiate KFX jet fighter project funding with S. Korea

A United States Air Force B-1B Lancer bomber (left), two US F-35As and two US F-35B stealth jets fly over South Korea with two South Korean F-16 (right) and two F-15K (left top) fighter jets during a previous joint military drill. - AFP/South Korean Defense Ministry

JAKARTA, Sept 8 (The Jakarta Post/ANN): The Indonesia Defence Ministry is set to renegotiate funding for a joint-development project for jet fighters with South Korea following payment issues on Indonesia’s part.

Ministry spokesperson Dahnil Anzar Simanjuntak said in a statement that the government would proceed to the next phase of renegotiations regarding the country’s share of the bill for the development of the Korean Fighter Xperiment/Indonesia Fighter Xperiment (KFX/IFX).

“The government is set to renegotiate (Indonesia’s) share of the cost, as well as the project’s sustainability,” Dahnil said on Tuesday (Sept 8) as quoted by

He added that South Korea had yet to agree on Indonesia’s previously stated terms, which entailed reducing the latter’s share of the development cost to 15 percent from 20 per cent.

“[Indonesia’s share of the cost] was only reduced to 18.8 percent,” Dahnil added.

An anonymous South Korean official previously disclosed that Indonesia was still due to pay the agreed-upon sum of 500 billion won or Rp 6.2 trillion (US$420.2 million) for the KFX/IFX project.

South Korea had agreed to renegotiations during President Joko “Jokowi” Widodo’s visit to the country in 2018 but required them to be completed within a year.

The project agreement was signed in 2015 and initially the first prototype was scheduled to be produced by 2019. The fifth prototype was expected to be produced at state-owned aircraftmaker PT Dirgantara Indonesia in Bandung.

Indonesia initially aimed to make the jet fighters operational by 2025. Indonesia had sought renegotiations because according to the previous provisions, Jakarta would have had to spend hundreds of trillions of rupiah on the project.

Indonesia has spent US$10 million on the research stage of the project since 2016. - The Jakarta Post/Asian News Network

Article type: metered
User Type: anonymous web
User Status:
Campaign ID: 46
Cxense type: free
User access status: 3
Join our Telegram channel to get our Evening Alerts and breaking news highlights

Next In Aseanplus News

Philippines: Duterte's daughter to seek re-election as Davao mayor, despite calls for presidency run
China applies to join Pacific trade pact to boost economic clout
Vietnam: Capital Hanoi narrows lockdown areas to recover business and production
Musk lauds Chinese carmakers as Tesla moves to repair image
Oil fall as US storm-hit supply makes slow return
Myanmar: Cases lower as Ministry of Health reports 1,790 cases as anther 85 deaths reported
Cricket-Former players back Rohit to replace Kohli as India's T20 captain
Over 50,000 Cambodian migrant workers get Covid-19 jabs as cases continue to rise in the country
Laos govt announces that Covid-19 control measures are extended until Sept 30
Brunei continues Covid-19 vaccination with China's Sinopharm donations

Stories You'll Enjoy